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Analysis and trends impacting construction, housing and development markets.

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  • Private residential construction spending increases in April

    Private residential construction spending increases in April

    Private residential construction spending was up 0.8% in April 2026, following the monthly gain of 0.6% in March. Gains in single-family and home improvement spending largely drove this increase. Overall, total private residential construction spending was 1.7% higher than a year ago.

    According to the latest construction spending data from the U.S. Census, single-family construction spending increased 1.4% in April, consistent with the steady builder confidence reflected in the National Association of Home Builders/Wells Fargo Housing Market Index.

    Improvement spending also increased in April, rising 0.4% for the month and remaining a bright spot year over year, with spending up 7.5% from April 2025.

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  • Construction employment increases in 32 states

    Construction employment increases in 32 states

    Construction employment rose in 32 states from April 2025 to April 2026, according to an analysis of new federal data released by the Associated General Contractors of America (AGC)on May 22, 2026. Texas added the most construction jobs, adding approximately 18,700 jobs, followed by North Carolina, Ohio, Louisiana, Illinois and Missouri. Louisiana had the largest percentage gain in the span of 12 months.

    “It’s encouraging to see construction employment increasing in many parts of the country,” said Ken Simonson, the AGC’s chief economist.

    In April 2026, Florida added the most construction jobs with 6,000, followed by Texas with 3,500, Massachusetts with 3,100, North Carolina with 2,700 and New Mexico with 2,600.

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  • March sees lowest saving rates since June 2022

    March sees lowest saving rates since June 2022

    According to the latest data from the Bureau of Economic Analysis, March 2026 saw the lowest personal saving rates since June 2022. On a year-over-year basis, personal income was 2.5% higher in March than in April 2025. As consumer spending outpaced income growth, the personal saving rate fell to 2.6%. This data point implies households are drawing more heavily on savings to support spending.

    Personal income was essentially unchanged in April 2026, following a 0.5% gain in March. Personal consumption expenditure rose 0.5% in April, following a 1% increase in March. Real spending, which was adjusted to remove inflation, increased 0.1% in April, with expenditure goods declining 0.2% and spending on services up 0.2%.

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  • Q1 2026 Homebuilding Permit Overview

    Q1 2026 Homebuilding Permit Overview

    Over the first three months of 2026, there were 214,655 permits issued nationwide to construct new single-family homes. This was down 7.6% from the first quarter of 2025. However, multifamily permits grew 7.1% to 121,404 total units over the first quarter of the year.

    At a state level, 12 states recorded year-over-year increases in single-family permits in March, with gains ranging from 18.6% in Alabama to 0.2% in Minnesota. Ten states issued the highest number of single-family permits, which accounted for 63.7% of all single-family permits issued nationwide. Texas led the country with 35,231 single-family home permits issued at the end of Q1 2026.

    Elevated financing costs, ongoing affordability challenges and softer builder sentiment continued to weigh on single-family construction activity, while multifamily permitting remained supported by demand for rental housing.

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  • Incentives are driving potential buyers

    Incentives are driving potential buyers

    Two of the country’s largest homebuilders, D.R. Horton and PulteGroup are investing in incentives for buyers. Mortgage rate buydowns, covering closing costs and overall price cuts can help close the sale for potential buyers. Both builders saw a jump in orders in Q1 of 2026, 11% for D.R. Horton and 3% for PulteGroup.

    However getting these buyers to the door are costing the builders in earnings results. Net income attributable to D.R. Horton for its second fiscal quarter decreased 20%. While PulteGroup reported its home sale gross margin was 24.4%, compared with prior year gross margin of 27.5%. However, neither are planning on cutting these incentives soon.

    “New-home demand remains impacted by affordability constraints and cautious consumer sentiment, said D.R. Horton CEO Paul Romanowski. “Our sales incentives increased during the second quarter, and we expect incentives to remain elevated for the rest of the year, with the level dependent on demand, mortgage interest rates, and other market conditions.”

    “Our ability to offer low fixed-rate mortgages and other incentives is certainly helping solve the affordability riddle for some,” said PulteGroup CEO Ryan Marshall. “But this comes at a price, as incentives in the quarter reached 10.9% of gross sales price.”

    The use of these incentives may draw some short term headwinds, but they keep builder momentum in the market.

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  • Pending home sales pick up in March

    Pending home sales pick up in March

    Pending home sales picked up 1.5% in March 2026 despite mortgage rates varying throughout the month, suggesting that rising borrowing costs may have pushed homebuyers to act while the housing market conditions showed signs of improvement. While contract signings were down 1.1% year-over-year, the monthly gain points to underlying demand going into the spring buying season. Rates rose from around 6.11% in mid-March to 6.38% by month’s end.

    The Realtor.com® March 2026 Housing Trends Report showed pending listings increased 3.9% year-over-year, the third consecutive month of annual gains, while new listings surged 21.2% from February to 439,000, exceeding the typical seasonal jump and giving buyers the most fresh inventory to browse in several years.

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  • Single-family housing starts surge in March

    Single-family housing starts surge in March

    U.S. single-family homebuilding increased to a 13-month high in March. According to the Commerce Department’s Census Bureau, single-family housing starts, which account for ​the bulk of homebuilding, surged 9.7% to a seasonally adjusted annual rate of ‌1.032 million units, the highest level since February 2025.

    Single-family housing starts increased to a pace of 941,000 units in February from 898,000 units in January. They rose 8.9% year-on-year in March. Overall housing starts vaulted 10.8% to a pace of 1.502 million units and increased 10.8% year-on-year in March.

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  • NAR releases new homebuyer market data

    NAR releases new homebuyer market data

    According to newly released data from the National Association of Realtors (NAR), adults ages 61 to 79, otherwise known as the baby boomers, accounted for 42% of all homebuyers and 55% of all sellers over the past year. This generation overtook millennials in 2025 and maintains a firm grip on the housing market, relying on housing wealth accrued over decades to bypass the high prices, which challenge younger, potential homebuyers.

    “The housing market remains sharply divided between homeowners with equity and first-time buyers trying to break in,” said Jessica Lautz, NAR’s deputy chief economist, in the report.

    As a result of these market dynamics, the share of first-time buyers among all homebuyers decreased to 21% over the last year, the lowest level since NAR began tracking the metric in 1981. Millennials, ages 27 to 45, who historically make up the bulk of first-time buyers, saw their overall buyer share drop from 29% to 26%.

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  • More interest in construction trades among young adults

    More interest in construction trades among young adults

    A new survey from the National Association of Homebuilders (NAHB) reported a positive attitude amongst young adults, ages 18 to 25, towards the construction trades. In a positive development for the home building industry, the share interested in a career in the construction trades doubled from 3% in 2016 to 6% in 2026.

    Closing the housing deficit will necessarily entail recruiting younger workers willing to start a career in the construction trades. While most young adults know the field in which they want, or currently have, a career, certainty about career choice is waning. In 2016, 74% knew the field they wanted to work in. In 2026, that share is down to 65%. The drop is likely associated with broader economic uncertainty and changing labor market dynamics. However, NAHB’s survey revealed an improved interest in careers in residential construction.

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  • More interest in construction trades among young adults

    More interest in construction trades among young adults

    A new survey from the National Association of Homebuilders (NAHB) reported a positive attitude amongst young adults, ages 18 to 25, towards the construction trades. In a positive development for the home building industry, the share interested in a career in the construction trades doubled from 3% in 2016 to 6% in 2026.

    Closing the housing deficit will necessarily entail recruiting younger workers willing to start a career in the construction trades. While most young adults know the field in which they want, or currently have, a career, certainty about career choice is waning. In 2016, 74% knew the field they wanted to work in. In 2026, that share is down to 65%. The drop is likely associated with broader economic uncertainty and changing labor market dynamics. However, NAHB’s survey revealed an improved interest in careers in residential construction.

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  • Housing Affordability Reaches Best Level Since January 2022
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    Housing Affordability Reaches Best Level Since January 2022

    Housing affordability began the year on its strongest footing since August 2022. In January 2026, the First American Data & Analytics Real House Price Index (RHPI) showed housing affordability improved nearly 11% compared with 2025. The improvement in affordability reflects a favorable combination of factors: Mortgage rates were 0.9 percentage points lower than a year ago, nominal house price growth nationally slowed to 0.6% and household income increased by 3.1%.

    While affordability remains more than 60& below its pre-pandemic five-year average, the recent progress offers a meaningful reprieve for prospective homebuyers. However, the strength of affordability gains varies across markets. For example, Cape Coral, Fla., stands out as the most improved among the top 100 markets, with affordability up more than 17% year-over-year.

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  • An Overview of the Homeowner Market
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    An Overview of the Homeowner Market

    A Redfin analysis of U.S. Census data from 2024, the most recent year for which data is available, broke down the share of three-bedroom-plus homes owned and occupied by each generation, by household type and size. According to the analysis, baby boomers living in one- to two-adult households own 28% of large homes in the U.S. By comparison, millennials with children living at home own 16% of those houses, barely more than half as much. Generation Z parents own less than 1% of the nation’s large homes.

    Millennials are the largest generation of parents in the U.S., and are also the largest generation in the nation, yet they own a relatively small share of family-sized housing. This dynamic can limit mobility for younger families, many of whom face both inventory and affordability challenges when trying to upgrade to bigger homes.

    “Younger buyers are looking to move into single-family homes in specific neighborhoods, those with a family-friendly vibe and highly rated schools,” said Brenda Beiser, a Redfin Premier agent in Philadelphia. “The problem is, younger families have a hard time finding those homes because the older people living in them can’t find anywhere they want to move to.”

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  • Single Women Outnumber Single Men in Homeownership

    Single Women Outnumber Single Men in Homeownership

    According to new research from the National Association of Realtors, over 20 million single women own homes, significantly outnumbering the roughly 14 million single men who do. Representing 21% of all buyers, women are becoming a driving force in the buyer’s market. Over the last 10 years, homeownership has grown among divorced, separated and never-married women.

    “Over the past two decades, homeownership among single men has been relatively flat, while single women have consistently maintained higher homeownership rates—and you see that showing up in today’s market,” said NAR senior economist Nadia Evangelou.

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  • Consumer Confidence Climbs in March

    Consumer Confidence Climbs in March

    Consumer confidence in March rose to a three-month high as consumers’ improved view of current business and labor market conditions outweighed weaker future expectations. Despite the increase, consumers remained concerned as inflation expectations surged to a seven-month high due to the Iran war and job worries from economic uncertainty.

    The Consumer Confidence Index, reported by the Conference Board, is a survey measuring how optimistic or pessimistic consumers feel about their financial situation. This index rose from 91.0 to 91.8 in March, the highest level this year.

    The Conference Board also reported the share of respondents planning to buy a home within six months. The share of respondents planning to buy a home fell slightly to 5.7% in March. Of those, the shares planning to buy a newly constructed home and an existing home were unchanged at 0.7% and 2.6%, respectively. The remaining 2.4% were planning to buy a home but were undecided between new or existing homes.

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  • Builders respond to market with innovative design

    Builders respond to market with innovative design

    According to the U.S. Census Bureau and the National Association of Realtors’ data, newly built homes are typically priced at or below existing homes, offering buyers more options in today’s challenging housing market. The homebuilding industry is responding to market conditions by constructing homes that balance price and meet modern homebuyer needs.

    Builders are increasingly expanding usable living space with patios, front porches and decks, complemented by exterior lighting and landscaping. Builders are also adapting to buyers’ preferences for flexible interiors and modern features, such as adding drop zones, adding a charging station for EVs and including multipurpose rooms in homes.

    “Homeownership remains a cherished ideal for families across the country, and builders are stepping up to make homes attainable,” said NAHB Chairman Bill Owens, a home builder and remodeler from Worthington, Ohio. “We will continue working with policymakers at every level of government to address supply-side challenges and seek regulatory relief that affects housing affordability.”

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  • Gen Z home ownership ticked up in 2025

    Gen Z home ownership ticked up in 2025

    Generation Z’s (Gen Z), individuals born between 1997 and 2012, home ownership rate rose in 2025. According to a Redfin analysis of the Current Population Survey’s Annual Social and Economic Supplement, more than 27.1% of Gen Z individuals nationwide owned their homes, up from 26.1% in 2024. The Gen Z home ownership rate’s increase allows builders to tap into a fresh clientele.

    While affordability improved slightly in 2025 from the year before and supply rose, high costs and economic uncertainty continued to act as a roadblock for clients looking into homebuying. Widespread economic uncertainty also put a dent in homebuying plans for many young Americans, with tariffs and lack of job security delaying major purchases. 

    “The reality is that with housing costs still historically high, many young Americans are making compromises on location, size or timing to get their foot in the homeownership door and start building equity,” said Asad Khan, a senior economist at Redfin. “Gen Zers… are making small gains in homeownership because they’re eager to buy, they’re making sacrifices, and because affordability has improved a bit at the margins–not because homes suddenly became affordable. We expect the slow progress to continue this year, with housing costs dipping slightly while wages rise.” 

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  • Remodeling Market Sentiment Index Improves

    Remodeling Market Sentiment Index Improves

    The recently released the NAHB/Westlake Royal Remodeling Market Index (RMI) of the fourth quarter of 2025, indicated a stronger remodeler confidence. The survey result of 64, is four points stronger than Q3 2025. This result despite often softer holiday activity reflects the increased demand for remodeling services. The current market is being shifted by life events like the need for age-in-place improvements and higher home equity allowing for HELOCs to be tapped.

    The survey looks at both the Current Conditions Index and the Future Indicators Index. Both indexes take into account the size of the remodeler as well. They each boasted stronger results than Q3.

    “Both components increased quarter-over-quarter and are above the break-even point of 50,” said  Eric Lynch, CBE, economist in the survey research group for NAHB. “The component measuring the current rate at which leads and inquiries are coming in rose five points to 54 while the component measuring backlog of remodeling jobs added two points to 58.”

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  • Michigan homebuilding reports increased activity in 2025

    Michigan homebuilding reports increased activity in 2025

    A recent release from the Home Builders Association of Michigan (HBAM) announced that last year’s single-family home production grew by 4.7% in 2025. This was gauged by permit activity and exhibits that a total of 15,821 single-family  permits were issued. This is a welcome increase compared to 15,108 in 2024.

    This report also comes as the end of year data from the federal government is delayed due to the shutdown in the fall. The estimated average market value HBAM reported for new single-family homes built last year in the state was $475,024. This is a 6.5% increase in Michigan in 2025.

    ““The state housing authority has done a tremendous job in trying to expand these efforts, but more needs to be done,” said Bob Filka, CEO of the HBA of Michigan. “Streamlining regulatory processes and expanding the use of innovative financial mechanisms to support the production of more attainable housing in our state is critically important.” 

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  • New home sales rose in September and October
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    New home sales rose in September and October

    The U.S. Census Bureau released the delayed Monthly New Residential Sales report for both September and October 2025.The September data reports a seasonally-adjusted annual rate of 738,000 and an October a rate of 737,000. Despite not much month to month change there is a significant 18.7% year over year increase.

    This data suggests a brighter future for the 2026 outlook. The period of September-October 2025 is now the strongest two-month stretch for new-home sales since early 2022.

    While the median sales price of new homes was 405,800 and $392,300 in September and October respectively. This is a eight percent decrease from the October 2024 price of $426,300. Yet this decrease is not surprising with many builders offering incentives and mortgage rate buydowns alongside lower prices.

    The release of the November data is still to be determined by the U.S. Census Bureau.

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  • The top master-planned communities of 2025

    The top master-planned communities of 2025

    John Burns Research and Consulting (JBRC) announced their annual top 50 master-planned communities (MPCs) for 2025. In their 15-year survey history, this year’s sales threshold is the sixth-highest performing. 2025 boasted stable sales in highly developed master-planned communities. Topping the overall list is The Villages, The Villages, FL with 3,611 sales in 2025 and a 13% year-over-year growth. Following in the top five are Lakewood Ranch, Cadence, Babcock Ranch and Sunterra. Additionally, the Asante master plan in Phoenix achieved the highest year-over-year sales growth, up 192% from 2024.

    Leading sales factors of MPCs encapsulate the overall lifestyle planning. Factors like high-quality amenities, access to strong schools, enhanced security and/or controlled access, mixed product offerings appealing to multiple life stages and built-in sense of community and belonging remain large factors in their success.

    “Despite elevated inventory, which affected even top-performing MPCs, communities that combined targeted incentive strategies, compelling lifestyle positioning and well-coordinated sales execution outperformed.” said the team at JBRC.

    Photo Credit: Sunterra Starwood Land featured in the December issue of Builder and Developer.

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  • 2025 ended with the lowest mortgage rates of the year
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    2025 ended with the lowest mortgage rates of the year

    Long-term mortgage rates are currently at their lowest level since September 2024. With incremental declines and three rate cuts from the Fed throughout the year, the 30-year fixed-rate mortgage average reported as 6.19% in December. Analysis from Freddie Mac shows that the 30-year fixed-rate mortgage is 5 basis points (bps) lower than November. This makes the 30-year rate lower by about half a percentage point compared to a year ago. Looking at the 15-year rate of 5.48% saw a 3 bps decrease. This is 45 bps lower than it was a year ago.

    “An NAHB analysis shows that a 25 bps reduction in the 30-year mortgage rate, from 6.25% to 6.00%, could bring approximately 1.1 million additional households back into the buyer pool,” wrote NAHB Forecasting and Analysis economist Catherine Koh. “NAHB expects the 30-year mortgage rate to average 6.17% in 2026 and would reach 6% by 2027.”

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